Economic Shocks in the Fisheries Sector and Maritime Piracy

Ludwig, Markus and Flückiger, Matthias (2014): Economic Shocks in the Fisheries Sector and Maritime Piracy.

Abstract

For a panel of 109 coastal countries we show that negative economic shocks in the fisheries sector are associated with an increase in maritime piracy. Our identification strategy uses the variation in the phytoplankton abundance off the individual countries' coasts, measured by satellite data, as a source of such shocks. We find that plankton abundance is positively related to fish catches but negatively associated with the incidence of piracy, onset and the absolute number of pirate attacks. Our instrumental variable estimates indicate that a one percent increase in fish catches reduces the risk of piracy occurring by one percentage point.

• Item Type: MPRA Paper
• Language: English
• Keywords: Maritime Piracy, Fisheries Sector, Instrumental Variable Regression
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict ; Conflict Resolution ; Alliances ; Revolutions; K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K42 - Illegal Behavior and the Enforcement of Law; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q22 - Fishery ; Aquaculture

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